Homework Clinic

Social Science Clinic => Accounting => Topic started by: sam.t96 on Jan 5, 2020

Title: The Beverage Division of Natural Foods Corporation had sales of $4,200,000 and operating income of ...
Post by: sam.t96 on Jan 5, 2020

The Beverage Division of Natural Foods Corporation had sales of $4,200,000 and operating income of $840,000 last year.  The total assets of the Beverage Division were $1,680,000, while current liabilities were $360,000.  Natural Foods Corporation's target rate of return is 9%, while its weighted average cost of capital is 7%.  The effective tax rate for the company is 40%.


What is the Beverage Division's Residual Income (RI)?
◦ $722,400
◦ $151,200
◦ $411,600
◦ $688,800

Title: The Beverage Division of Natural Foods Corporation had sales of $4,200,000 and operating income of ...
Post by: todom5090 on Jan 5, 2020

$688,800

Title: Re: The Beverage Division of Natural Foods Corporation had sales of $4,200,000 and operating income
Post by: KKKwang Bae on Dec 9, 2020

thank you!

Title: Re: The Beverage Division of Natural Foods Corporation had sales of $4,200,000 and operating income
Post by: Harsh Kahlon on Mar 16, 2022

a